Heavy hitters like Google breaking into the streaming music arena has always been a concern for companies trying to make it in that tough business, and now it seems as though that often discussed hypothetical is about to come true.

The Financial Times is reporting that Google is in talks with major music labels in an effort to launch their own streaming music service.

It is easy to assume that this new venture for Google would include both subscription and “free” access supported by their almost monopolistic online advertising platform like many of the current fan favorites. Not only does Google have deep pockets but they also have something the competition does not, a vast reaching experienced ad sales team, and millions of advertisers plugged into their AdWords service.

As if that were not enough, one could easily imagine Google pre-installing this new music streaming product and integrating it into their ever expanding network of mobile, tablet, and now high end laptop hardware devices – much like Apple does with iTunes on all of its products. Competing with free AND preinstalled won’t be easy.

Will Google soon dominate the music streaming landscape or will they fall short, much like they did when trying to break into social with Google+? With their deep pockets and built in ad sales team, failing won’t be easy but, even if they do, they could spend years putting pressure on the competition, bleeding them dry.

20 Responses to “Google Streaming Music Service Imminent?”

This could be serius trouble for Pandora and Slacker. Their’s would be the business model most replicated by Google and their streaming music service. Data is still limited by most servers. Verizon has ended the unlimited data plan offering. Once you update your phone, the data comes at a price. Satelite is the only way to go for now…at least until technology provides an abundant supply of low or no cost data.

Using Verizon’s data usage calculator, streaming a mere 1 hour of music per day would end up using 1.76 GB of data. When considering most people have 2GB plans, that is a huge amount.

Many people continue to say data usage is not a consideration when streaming music, but they’re just refusing to face the very real facts of the matter. Here’s the link to the calculator, see for yourself……http://www.verizonwireless.com.....rPopup.jsp

Most users do not listen for more than 30 hours per month so, they’re all set. I think that is what the naysayers are missing. Not only do typical users not spend 30 hours per month listening but with wifi enabled phones, most users are not streaming via 3g for the entire time they listen. Thus, the vast majority of users are not effected by data caps.

Just listening as little as a half hour per day would use up nearly half of the average 2GB plan. As far as wifi network use is concerned, most of the country’s wifi networks are few and far between. The infrastructure is woefully under-developed and not a viable solution.

Although anectodal examples are pretty useless, as far as I’m concerned, I will share the fact that I’ve been forced to drastically curtail my usage, since losing my unlimited plan.

Were you among the crowd that said cell phones will never make it because people will not pay an additional $60 per month?

I just gave you the listening hours and listening metrics. It comes out to 21 hours per month. That will not cap a data plan. The usage on data plans is even less because many users do a lot of streaming from wifi.

I don’t think anyone is questioning how much data is being consumed if you do that much listening.

The problem is, most people aren’t doing that much listening.

Also, you are not taking into account that Sprint offers unlimited data and ATT’s base plan is 3GB. You also don’t mention that Verizon and ATT users are still on Unlimited plans (and will do anything to keep them) and they also offer plans with 10GB of transfer. 2GB is not the only option.

Also, a lot of services are allowing caching which can be done when you enter a wi-fi zone.

Power users who are listening to a lot of music and streaming a lot of video are the same kind of users who have higher rate data transfer plans and know how to do optimize their device to take advantage of wifi zone.

Yes, If you listen to music a few hours per day and you have a 2GB plan you will run into overages.

I listen to Sirius to and from work daily. Thats 5 hours weekly and 20 monthly…then lunch is taken in my car…half hour to 45 minutes…there’s your 30 hours of Sirius listening alone. Now add some weekend listening and maybe a road trip or two, a day at the beach, or poolside…oh…and by the way, do you use your smart phone for anything else that uses up data? Lets be real here. Once again, there is absolutely no comparing the two media delivery methods. One day, things may be different, but for now, most users need to watch their data usage. Doesn’t matter weather your name is Google, Apple, or anyone else. And by the way, I am in my late 50’s, so my usage shouldn’t seem to be a lot. Not compared todays younger generation. They seem to use their phones almost 24-7. That will never happen with streaming music and a limited data plan.

As much as you think your situation is typical, it is not. I don’t relate either, I listen for 8 hours per day but, the fact remains, the average listener is only tuning in for 20ish hours per month. You can’t argue with Pandoras numbers. If anything, 21 hours per month is inflated.

Some things to consider;

– Sprint still offers unlimited data, ATT has both 3 and 5GB plans, while Verizon offers a range from 2-10GB per month. – Those who might be affected because they listen a lot are likely power users with unlimited or high data plans anyway. – A lot of services, like SiriusXM, are starting to offer caching so no data transfer is required.

I agree…caching is one of the new technologies I spoke of. I don’t completely understand it but it sounds like all, or some,… of the available data in your plan is stored in advance of use, so you can efficiently use it as needed? Nothing is left on the table if you should have a light month, but rather stored for future use? It would really stink if you watch a lot of Netflix and YouTube, and listen to streaming music, then partway through the month you are all done. Just like RAM and hard drive storage has grown to monsterous sizes in our pc’s, I agree as time goes on data will become more available. Thanks for the info.

Point #1) I do not regard listening 15-30 minutes/day as alot of listening, as exemplified in my first two examples.

Point #2) Sprint’s “unlimited data” plan is a ruse. The fine print clearly states usage of over 5GB can result in throttling and even termination of the contract.

Point #3) AT&T’s and Verizon’s unlimited plans are for only those that are eligible for grandfathering. All new plans are tiered. It’s only a matter of time before they become obsolete.

Point #4) The larger plans offered by the carriers really is not relevant to the point I’m trying to convey (probably my fault). The point is….once data usage is rightfully entered into the cost equation, the satellite delivery system is superior to IP, strictly from a cost to the consumer standpoint.

I realize other factors go into choosing a service, but cost is a very important one and cannot be ignored. And of course I am speaking only to Siri’s satellite delivery and not their IP side of the business.

#1 I don’t think its a lot of listening either. Frankly I find it laughably low BUT, I can’t argue with average time spent listening.

#2 That is fine but, we still have to acknowledge that people are getting up to 5GB with Sprint. I am sure you can get away with 10 or 20+ if you’re not streaming HD video during peak hours (you get away with it on VZ and ATT).

#3 Power users are keeping old phones and buying new phones out of pocket because they realize the longterm savings of these old grandfathered plans. Lots of articles and discussions about holding onto those plans for dear life. My parents, who aren’t savvy at all refuse to let go of their unlimited plan (only one example, I know it means nothing).

#4 How can we not consider the larger plans? The issue is, power users have these larger plans.

Cost is important and there are certainly cases of people getting hammered on their cell bills but, these are exceptions, not the norm. Maybe the avg user only listens to 21 hours per month because they are very aware of their data cap?

If my math is correct 21 hours/month translates into roughly 42 min/day. This contradicts your claims that the average user listens only for a short duration. This also translates into roughly 1.32 GB/month of data usage.

Throw in a mere 5 min/day of 3G video and you’re at 1.93GB/month, or almost the entire allotment of the average 2GB plan.

I don’t think the average person watches 5 minutes of 3G video per day on their phone. I know it seems like a small and reasonable number but, the reality is, people aren’t using that much data AND when they do, its sitting around in places with wifi.

Again, I dont doubt how easily you can get to 2GB per month, nor do I doubt your numbers, personally I find it VERY easy, the problem is MOST people don’t do it. IF they do, they are likely power users with more available bandwidth.

My cellphone plan gives me 750 minutes per month, I use about 100. 100 minutes might seem crazy to some people but, I think you’d be surprised how little data/time the average user uses.

To sum up, we both agree that hitting 2GB is very easy (with or without music BTW). Where we disagree is whether or not people are actually limited by their data plan. I don’t think they are… you do. I can live with that.

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